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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5251 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5251

  To establish a pilot program to support domestic critical material 
                  processing, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

 Mr. Hickenlooper (for himself, Mr. Graham, Mr. Young, and Mr. Coons) 
introduced the following bill; which was read twice and referred to the 
               Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
  To establish a pilot program to support domestic critical material 
                  processing, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Critical Materials Future Act of 
2024''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Country of risk.--The term ``country of risk'' has the 
        meaning given the term in section 10114(a) of the Research and 
        Development, Competition, and Innovation Act (42 U.S.C. 
        18912(a)).
            (2) Critical material.--The term ``critical material'' has 
        the meaning given the term in section 7002(a) of the Energy Act 
        of 2020 (30 U.S.C. 1606(a)).
            (3) Domestic.--The term ``domestic'' means facilities 
        operating within the United States or within any territory or 
        possession of the United States.
            (4) Eligible project.--The term ``eligible project'' means 
        a project that refines and processes or recycles raw critical 
        materials into purified forms suitable for first-use 
        applications.
            (5) Entity of concern.--
                    (A) In general.--The term ``entity of concern'' has 
                the meaning given the term in section 10114(a) of the 
                Research and Development, Competition, and Innovation 
                Act (42 U.S.C. 18912(a)); and
                    (B) Inclusion.--The term ``entity of concern'' 
                includes an entity that the Secretary has determined, 
                using a risk-based approach, is subject to the control 
                or influence of a foreign nation whose strategic 
                interests concerning critical materials does not align 
                with the strategic interests of the United States.
            (6) Innovative financial tools.--The term ``innovative 
        financial tools'' means financial instruments to support 
        demand-side economic mechanisms, including--
                    (A) pricing support mechanisms, such as contracts 
                for difference and price floors, advanced market 
                commitments, and forward contracts; and
                    (B) other transactions that the Secretary may enter 
                into under section 646 of the Department of Energy 
                Organization Act (42 U.S.C. 7256).
            (7) Pilot program.--The term ``Pilot Program'' means the 
        Domestic Critical Material Processing Pilot Program established 
        under section 4(a).
            (8) Reliable sources.--
                    (A) In general.--The term ``reliable source'' has 
                the meaning given the term in section 12 of the 
                Strategic and Critical Materials Stock Piling Act (50 
                U.S.C. 98h-3).
                    (B) Inclusions.--The term ``reliable source'' 
                includes facilities owned by, controlled by, or subject 
                to the jurisdiction of any country--
                            (i) with which the United States has a free 
                        trade agreement in effect; and
                            (ii) designated a major non-NATO ally under 
                        section 517 of the Foreign Assistance Act of 
                        1961 (22 U.S.C. 2321k).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to support domestic critical material processing with 
        innovative financial tools to reduce supply chain 
        vulnerabilities and enhance energy and national security; and
            (2) to evaluate the effectiveness of innovative financial 
        tools in supporting investment in and expanding domestic 
        critical materials processing, including the impact of 
        different support mechanisms on project development for various 
        critical materials and fostering more liquid, transparent, and 
        predictable markets for critical materials.

SEC. 4. DOMESTIC CRITICAL MATERIAL PROCESSING PILOT PROGRAM.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall establish a pilot program, 
to be known as the ``Domestic Critical Material Processing Pilot 
Program'', to support not fewer than 3 domestic critical material 
processing projects.
    (b) Objectives.--The objectives of the Pilot Program are--
            (1) to provide financial stability and attract private 
        investment in eligible domestic critical material processing 
        projects;
            (2) to analyze how different financial tools influence 
        critical material market dynamics and projects and the 
        estimated level of financial support needed to secure reliable 
        United States supply chains for various critical materials and 
        support a sufficient domestic critical materials processing 
        industry; and
            (3) to reduce supply chain vulnerabilities and enhance 
        energy security and national security.
    (c) Requirements.--
            (1) Implementation.--
                    (A) Regulations.--Not later than 180 days after the 
                date of enactment of this Act, the Secretary shall 
                issue regulations to implement the Pilot Program.
                    (B) Other transaction authority.--In carrying out 
                the Pilot Program, the Secretary shall have the 
                authority to enter into other transactions in the same 
                manner and subject to the same terms and conditions as 
                transactions that the Secretary may enter into under 
                section 646 of the Department of Energy Organization 
                Act (42 U.S.C. 7256).
                    (C) Flexible hiring authority.--The Secretary may 
                appoint and fix the compensation of such temporary 
                personnel as may be necessary to carry out and 
                implement the Pilot Program, without regard to the 
                provisions of subchapter I of chapter 33 of title 5, 
                United States Code, governing appointments in 
                competitive service and compensation of personnel.
                    (D) Consultation.--The Secretary shall consult 
                outside stakeholders and experts, including mining and 
                critical material processing industry representatives, 
                financial experts, and academic researchers, during 
                development of the Pilot Program for purposes of 
                improving the effectiveness and efficiency of the Pilot 
                Program.
            (2) Diversity.--The Pilot Program shall provide support for 
        the processing of not fewer than 3 different types of critical 
        materials in order to gain insight into the impact of 
        innovative financial tools on different critical material 
        markets.
            (3) Sunset.--The Pilot Program shall terminate on the date 
        that is not later than 5 years after the date the Pilot Program 
        is established under subsection (a).
    (d) Applications.--
            (1) In general.--Applications under the Pilot Program for 
        eligible projects shall be submitted to the Secretary at such 
        time, in such manner, and containing such information as the 
        Secretary may require.
            (2) Selection criteria.--
                    (A) In general.--The Secretary shall select 
                applications under the Pilot Program for eligible 
                projects based on--
                            (i) the potential of the eligible project 
                        to enhance the energy and national security of 
                        the United States;
                            (ii) the economic competitiveness of the 
                        eligible project;
                            (iii) the prioritization requirements 
                        described in subparagraph (B); and
                            (iv) other factors, as determined by the 
                        Secretary, in coordination with the agencies 
                        described in subsection (e).
                    (B) Priority.--In selecting applications under the 
                Pilot Program for eligible projects, the Secretary 
                shall prioritize eligible projects--
                            (i) that use feedstock from domestic and 
                        reliable sources, with higher priority given to 
                        eligible projects that have greater use of 
                        feedstock from those sources; and
                            (ii) the applicants of which have offtake 
                        agreements with domestic and reliable sources 
                        for at least a majority of their processed 
                        products.
            (3) Timeline.--The Secretary shall select applications 
        under the Pilot Program for eligible projects not later than 1 
        year after the date of enactment of this Act.
    (e) Coordination.--
            (1) In general.--To ensure the efficient implementation and 
        operation of the Pilot Program, the Secretary shall coordinate 
        with--
                    (A) the Secretary of Commerce;
                    (B) the Secretary of Defense;
                    (C) the Secretary of the Interior;
                    (D) the Secretary of State;
                    (E) the Director of the United States Geological 
                Survey;
                    (F) the United States Trade Representative; and
                    (G) the heads of other Federal departments and 
                agencies, as determined by the Secretary.
            (2) Security research and development.--When selecting 
        applications and determining the level of financial support for 
        each project under the Pilot Program, the Secretary shall 
        coordinate with the Secretary of Defense to incorporate 
        insights from the Open Price Exploration for National Security 
        research and development program of the Defense Advanced 
        Research Projects Agency.
    (f) Study.--
            (1) In general.--Not later than 2 years after the date on 
        which the Pilot Program terminates under subsection (c)(3), the 
        Secretary shall conduct and publish a study on--
                    (A) the impact of innovative financial tools on the 
                critical materials sector and the relative cost-
                effectiveness of those tools in supporting domestic 
                critical materials processing projects and developing 
                more liquid, transparent, and predictable markets for 
                critical materials;
                    (B) the estimated level of financial support needed 
                to secure reliable United States supply chains for 
                various critical materials and support a sufficient 
                domestic critical materials processing industry;
                    (C) the potential of critical material recycling to 
                support the domestic critical materials market;
                    (D) the effectiveness of the Pilot Program, 
                including an evaluation of each eligible project 
                supported by the Pilot Program; and
                    (E) whether the models of the Open Price 
                Exploration for National Security research and 
                development program of the Defense Advanced Research 
                Projects Agency allowed the Pilot Program to better 
                anticipate market trends, optimize resource allocation, 
                and provide the appropriate level of support based on 
                current and future critical material market needs.
            (2) Insights.--The study under paragraph (1) shall include 
        insights into concerns of private investors in different 
        critical material markets and the impact of innovative 
        financial tools on catalyzing final investment decisions.
            (3) Stakeholder engagement.--The study under paragraph (1) 
        shall be carried out in consultation with relevant 
        stakeholders, as determined by the Secretary, including mining 
        and critical material processing industry representatives, 
        financial experts, and academic researchers.
            (4) DARPA open program.--The Secretary shall share the 
        results of the study under paragraph (1) with the Open Price 
        Exploration for National Security research and development 
        program of the Defense Advanced Research Projects Agency to 
        inform ongoing research and development of tools to support 
        transparency in domestic critical materials markets.
    (g) Report.--
            (1) In general.--The Secretary shall submit to the 
        Committees on Energy and Natural Resources, Foreign Relations, 
        and Armed Services of the Senate, and the Committees on Natural 
        Resources, Energy and Commerce, and Armed Services of the House 
        of Representatives, an annual report for each year that the 
        Pilot Program is carried out.
            (2) Contents.--The report under paragraph (1) shall 
        include--
                    (A) activities, expenditures, and outcomes of the 
                Pilot Program;
                    (B) recommendations to Congress on the continuation 
                or expansion of the Pilot Program; and
                    (C) recommendations for how the Federal Government 
                should use innovative financial tools--
                            (i) to increase domestic critical materials 
                        processing capacity;
                            (ii) to mitigate market volatility;
                            (iii) to boost price transparency in 
                        critical materials markets;
                            (iv) to leverage market indices in 
                        countries other than those designated as 
                        countries of risk;
                            (v) to ensure long-term adequate supplies 
                        of critical materials for the economy of the 
                        United States; and
                            (vi) to increase the domestic recycling of 
                        critical materials.
    (h) Funding.--
            (1) Financial mechanisms.--
                    (A) In general.--In establishing and carrying out 
                the Pilot Program, the Secretary shall enter into 
                agreements, including contracts, grants, and 
                cooperative agreements, and other transactions, as 
                determined by the Secretary, to enable the use of 
                innovative financial tools to support domestic critical 
                material processing projects.
                    (B) Authority.--In carrying out subparagraph (A), 
                the Secretary may use innovative financial tools, 
                including price support such as contracts for 
                differences, and leverage functions to develop and 
                drive critical materials processing to entities that 
                are not entities of concern, under such terms and 
                conditions as the Secretary determines to be necessary 
                or appropriate.
            (2) Reinvestment of revenue.--
                    (A) Establishment.--There is established in the 
                Treasury of the United States a fund, to be known as 
                the ``Critical Materials Revolving Fund'' (referred to 
                in this paragraph as the ``Fund'').
                    (B) Purposes.--The Fund shall be available to the 
                Secretary as a revolving fund--
                            (i) to reinvest amounts generated from 
                        eligible projects into new critical materials 
                        processing projects under the Pilot Program; 
                        and
                            (ii) to further enhance the objectives of 
                        the Pilot Program.
            (3) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this Act 
        $750,000,000, to remain available until expended.
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